Clearly the major issue confronting the UK housing market is lack of supply at present and therefore it is very positive to see the Government upping its commitment to getting more homes built, especially of the affordable variety. The Help to Buy scheme has been an undoubted success since launch and therefore the expansion of Help to Buy: shared ownership should boost this important part of the market. The commitment to build 400,000 'affordable homes' will make a huge difference if these figures can be achieved, however we have to ensure the land is available and that house builders across the country have the resources in order to make this happen. Unfortunately, this can be a slow process and, even with a strong tail wind, there could be major issues with getting these types of homes and developments built within the timescale the Government wants.
Of course, the housing market is not just one of home-ownership. Even with 'affordable options' and discounts provided to purchase, there will still be many individuals who are unable and or simply unwilling to purchase. This is where the private rental sector also needs to be supported and we are heavily involved in a project where we let and manage up to 6,000 new-build rental homes currently being built. There is a balance that needs to be achieved between home-ownership and delivery of quality private rental homes and it is positive to see the Government willing to support both sides of this housing coin.
As with all these schemes and announcements, the proof of the pudding will be in the eating, and if these targets can be achieved then the UK housing market will be going some way to filling the gap that exists. Increasing supply remains key if we are going to have a UK housing market fit for purpose and therefore I suspect this type of commitment will need to be grown and developed over the years ahead if we are going to keep up with demand.
